Subscribe to Print Edition | Tue., July 03, 2007 Tamuz 17, 5767 | | Israel Time: 10:35 (EST+7)
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Egal Ahouvi's golden touch: Ravad value triples in five months
02.7.07 | 16:03   By Michael Rochvarger

He must have the golden touch, or at least shareholders of Ravad (TASE: RAVD) think he does. In the five months since Egal Ahouvi bought the controlling interest in the real estate company, its market cap in Tel Aviv has more than tripled.


The Israeli businessman acquired 78.8% of the shares in the company according to a company value of $53 million. Since then Ravad's market value has jumped to $185 million, or 3.5 times the acquisition price. Yet it hasn't announced anything particularly interesting or closed any deals worthy of note -


Yesterday alone, Sunday, shares of Ravad leaped by 14.5%. But then, yesterday Ahouvi leaped into action.


On Sunday the market learned of one major deal in which Ravad is involved, together with Yitzhak Tshuva group company Delek Real Estate (TASE: DLKR)  in Germany.


Separately, Ahouvi has recently closed two more deals, one also in Germany and one in Switzerland. Assuming the Ravad checks and balances agree, it will be taking over those two deals.


Yet there seems to be no particular reason for the leap in Ravad's market value, other than the high esteem in which local players hold Ahouvi and his vision. That alone, and estimations that he'll be developing Ravad like he developed his worldwide property business, seems to warrant the high premium.


Ahouvi has come a long way since his days as an accountant, who tired of Excel files and other people's figures. More than 20 years ago he abandoned his career in number-crunching and went into business for himself. He chased his dream in Britain and now has a real estate empire.


His first deal was in 1986: Ahouvi bought an office in Northampton from the U.K. government for 1.5 million pounds. Today his property business is estimated at 3 billion pounds, or more, but it's all private so it's hard to say.


He continues to operate in Britain but as property prices there soared to the cloudy skies, Ahouvi decided to seek his fortune elsewhere too. He has invested hundreds of millions of dollars in Switzerland, Germany, Sweden and Israel too.


One of his most publicized deals in recent memory is the acquisition of 128 parking lots in Britain for 609 million pounds; 16 Hilton chain hotels for NIS 3.3 billion, that also with Yitzhak Tshuva, and an NIS 8.7 billion acquisition of 47 Marriott chain hotels in the U.K. too. In that he teamed up with the Royal Bank of Scotland.


As an Israeli himself, he seems to like working with Israeli companies. He has cooperated extensively with Yitzhak Tshuva ? in fact Ahouvi owns 5% of Delek Real Estate and a few percent in Delek Global Real Estate. He also works with Gershon Salkind, through Electra Real Estate (TASE:  ELCRE). His personal fortune is estimated to be around $400 million to $500 million.


Ahouvi's adventures in his homeland began fairly recently. Before buying Ravad in February, he bought the Herzliya Medical Center for $40 million and a commercial center in Ramat Aviv, Tel Aviv, for $12 million. He had contended in the race for the Tnuva fresh-foods cooperative but lost that to Apax.


In general Ahouvi has pursued his business in a low-key fashion, far from the media glare. That may have to change a bit. Ravad has soared in value: now Ahouvi will have to prove there's good eating in that there pudding.

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